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Internet Capital Group Announces First Quarter Financial Results
Wayne, PA – May 03, 2007 – Internet Capital Group, Inc. (Nasdaq: ICGE) today reported its results for the first quarter ended March 31, 2007.
“In the first quarter of 2007, ICG saw significant aggregate revenue growth and EBITDA improvement at our nine core partner companies,” said Walter Buckley, ICG’s Chairman and Chief Executive Officer. “During the quarter, the ICG team continued to focus on building our core companies, specifically strengthening their management teams through new hires and driving M&A activity. Across the board, our companies met and, in some cases exceeded, our expectations for the quarter.”
ICG Financial Results
ICG consolidated the results of two partner companies, ICG Commerce and Investor Force, for the three months ended March 31, 2007, versus the results of three partner companies, ICG Commerce, Investor Force and StarCite, for the three months ended March 31, 2006.
ICG reported consolidated revenue of $11.8 million for the first quarter of 2007 versus $15.2 million for the comparable 2006 period. The increase in revenue at ICG Commerce and Investor Force was more than offset by the deconsolidation of StarCite. ICG reported a net loss of $(19.6) million, or $(0.52) per share, for the first quarter of 2007, versus a net loss of $(4.9) million, or $(0.13) per share, for the comparable 2006 period.
Results for the first quarter of 2007 include $9.9 million in net charges, driven primarily by a $10.8 million charge related to ICG’s repurchase of all of its remaining convertible notes. Results for the first quarter of 2006 include $1.0 million in net gains, primarily related to discontinued operations and income taxes.
As of March 31, 2007, ICG’s corporate cash balance was $56.7 million, the value of its holdings in Blackboard (Nasdaq: BBBB) was $72.4 million and the value of its holdings in GoIndustry (LSE.AIM: GOI) was $30.3 million.
Online versions of Q1 Release Earnings (PDF):
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ICG
Core Partner Company Information
Set forth below is pro forma information relating to ICG’s current nine core companies: Channel Intelligence, Freeborders, ICG Commerce, Investor Force, Marketron, Metastorm, StarCite, Vcommerce and WhiteFence. Our average ownership position in these nine companies was 45% at March 31, 2007. Please refer to the supplemental financial data at the end of this release for a reconciliation of such amounts to the nearest comparable GAAP measures.
In the first quarter of 2007, aggregate pro forma revenue of ICG’s nine private core companies grew 25% year-over-year, to $54.6 million from $43.6 million in the first quarter of 2006. Aggregate pro forma EBITDA (loss) for the core companies was $(3.7) million in the first quarter of 2007, versus $(6.2) million in the first quarter of 2006, which is an improvement of 40%.
“With the repurchase of our convertible notes earlier this quarter, ICG is in its best financial position in recent years,” said R. Kirk Morgan, ICG’s Chief Financial Officer. “The combination of a strong, debt-free balance sheet and the solid performance of our partner companies positions us to build and deliver long-term shareholder value.”
ICG will host a webcast at 10:00 a.m. ET today to discuss its financial results. As part of the live webcast for this call, ICG will post a slide presentation to accompany the prepared remarks. To access the webcast, go to http://www.internetcapital.com/investorinfo-preswebcast.htm and click on the link for the first quarter conference call webcast. Please log on to the website approximately ten minutes prior to the call to register and download and install any necessary audio software. The conference call is also accessible through listen-only mode at 877-407-8035. The international dial-in number is 201-689-8035.
For those unable to participate in the conference call, a replay will be available from May 3, 2007 at 11:00 a.m. ET until May 13, 2007 at 11:59 p.m. ET. To access the replay, dial 877-660-6853 (domestic) or 201-612-7415 (international) and enter the account code 286, followed by the conference ID number 229385. The replay and slide presentation also can be accessed on the Internet Capital Group web site at http://www.internetcapital.com/investorinfo-preswebcast.htm. |
About
Internet Capital Group
Internet Capital Group (www.internetcapital.com) acquires and builds Internet software and services companies that drive business productivity and reduce transaction costs between firms. Founded in 1996, ICG devotes its expertise and capital to maximizing the success of these platform companies, which are delivering software and service applications to customers worldwide.
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Safe
Harbor Statement under Private Securities Litigation Reform
Act of 1995
The statements contained in this press release that are not historical facts are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future performance of our partner companies, acquisitions or dispositions of interests in additional partner companies, the effect of economic conditions generally, capital spending by customers, the development of the e-commerce and information technology markets, and uncertainties detailed in the Company’s filings with the Securities and Exchange Commission. These and other factors may cause actual results to differ materially from those projected.
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